BUS137 Chapter 9


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BUS137 Chapter 9

  1. 1. McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. Learning Objectives <ul><li>L01: S imilarities and differences between leading and managing </li></ul><ul><li>L02: S ources of power in organizations </li></ul><ul><li>L03: Personal traits and skills of effective leaders </li></ul><ul><li>L04: Distinguish between charismatic and transformational leaders </li></ul><ul><li>L05: O pportunities to be a leader in an organization </li></ul><ul><li>L06: H ow to further your own leadership development </li></ul>
  3. 3. Vision – what is it? <ul><li>Mental image of a possible and desirable future state of the organization. </li></ul><ul><li>Expresses the leader’s ambitions for the organization. </li></ul><ul><li>Creates high performance aspirations, the nature of corporate or business strategy, or the kind of workplace. </li></ul><ul><li>Without vision, managers do not develop </li></ul><ul><li>into strong leaders </li></ul>
  4. 4. Leading and Managing <ul><li>Leading </li></ul><ul><li>-setting the direction </li></ul><ul><li>- inspiring people to attain vision </li></ul><ul><li>-keep people focused on moving organization toward its ideal future </li></ul><ul><li>- motivating people to overcome obstacles </li></ul><ul><li>Managing </li></ul><ul><li>-deal with ongoing day-to-day complexities </li></ul><ul><li>-requires planning and budgeting routines </li></ul><ul><li>-requires structuring organization, staffing it with capable people, and monitoring activities </li></ul>
  5. 5. Leadership Styles <ul><li>Supervisory Leadership </li></ul><ul><ul><li>provides guidance, support and corrective feedback for day-to-day activities </li></ul></ul><ul><li>Strategic Leadership </li></ul><ul><ul><li>gives purpose and meaning to organizations by anticipating and envisioning a viable future </li></ul></ul><ul><ul><li>works with others to initiate changes that create such a future </li></ul></ul>
  6. 6. Sources of Power <ul><li>Legitimate power </li></ul><ul><ul><ul><li>right or authority to tell others what to do </li></ul></ul></ul><ul><li>Reward power </li></ul><ul><ul><ul><li>influences others because of control over rewards </li></ul></ul></ul><ul><li>Coercive power </li></ul><ul><ul><ul><li>control over punishment </li></ul></ul></ul><ul><li>Referent power </li></ul><ul><ul><ul><li>appealing personal characteristics </li></ul></ul></ul><ul><li>Expert power </li></ul><ul><ul><ul><li>expertise or knowledge that others can learn from or gain from </li></ul></ul></ul>
  7. 7. Traditional Approaches to Leadership <ul><li>Trait approach </li></ul><ul><ul><li>focuses on individual leaders </li></ul></ul><ul><ul><li>determines personal characteristics that great leaders share </li></ul></ul><ul><li>Behavioral approach </li></ul><ul><ul><li>identifies what good leaders do </li></ul></ul><ul><ul><li>what behaviors they exhibit </li></ul></ul><ul><li>Situational approach </li></ul><ul><ul><li>effective leadership behavior varies from situation to situation </li></ul></ul>
  8. 8. Important Traits for Leaders <ul><li>Drive </li></ul><ul><ul><li>high level of effort ; high need for achievement, constant striving to accomplish </li></ul></ul><ul><li>Leadership motivation </li></ul><ul><ul><li>extraverted, high need for power . </li></ul></ul><ul><li>Integrity: </li></ul><ul><ul><li>Honest, credible, “walks the walk” </li></ul></ul><ul><li>Self-confidence </li></ul><ul><ul><li>overcome obstacles, decide despite uncertainty </li></ul></ul><ul><li>Knowledge of the business </li></ul><ul><ul><li>high level of knowledge about their industries, companies, and technical matters; intelligent </li></ul></ul>
  9. 9. Decision Styles <ul><li>Autocratic - “self” </li></ul><ul><ul><li>leader makes decisions on his or her own and then announces those decisions to the group </li></ul></ul><ul><li>Democratic leadership – “participative” </li></ul><ul><ul><li>leader solicits input from others </li></ul></ul><ul><li>Laissez-faire – “allow to do” </li></ul><ul><ul><li>essentially makes no decisions </li></ul></ul><ul><ul><li>more negative attitudes and lower performance. </li></ul></ul>
  10. 10. Path-goal Theory <ul><li>How leaders influence subordinates’ perceptions of their work goals and the paths they follow toward attainment of those goals. </li></ul><ul><li>Two key situational factors </li></ul><ul><ul><li>Personal characteristics of followers </li></ul></ul><ul><ul><li>Environmental pressures and demand with which followers must cope to attain their work goals </li></ul></ul>
  11. 11. Path-Goal Theory <ul><li>Four Pertinent Leadership Behaviors </li></ul><ul><li>Directive Leadership </li></ul><ul><ul><li>form of task performance-oriented behavior </li></ul></ul><ul><li>Supportive Leadership </li></ul><ul><ul><li>form of group maintenance-oriented behavior </li></ul></ul><ul><li>Participative Leadership </li></ul><ul><ul><li>decision style </li></ul></ul><ul><li>Achievement-oriented Leadership </li></ul><ul><ul><li>behaviors geared toward motivating people </li></ul></ul>
  12. 12. Path-Goal Theory <ul><li>Three Key Follower Characteristics </li></ul><ul><li>Authoritarianism </li></ul><ul><ul><li>degree to which individuals respect, admire, or defer to authority </li></ul></ul><ul><li>Locus of control </li></ul><ul><ul><li>extent to which individuals see environment as responsive to their own behavior </li></ul></ul><ul><li>Ability </li></ul><ul><ul><li>people’s beliefs about their own abilities to do their assigned jobs </li></ul></ul>
  13. 13. Path-Goal Theory <ul><li>Functions of the leader </li></ul><ul><li>Provide coaching and direction </li></ul><ul><ul><li>Make path to work goals easier </li></ul></ul><ul><li>Reduce frustrating barriers to goal attainment </li></ul><ul><li>Increase opportunities for personal satisfaction </li></ul><ul><ul><li>Increase payoffs to people for achieving performance goals </li></ul></ul>
  14. 14. Contemporary Perspectives <ul><li>Charismatic leader </li></ul><ul><ul><li>dominant, exceptionally self-confident </li></ul></ul><ul><ul><li>strong conviction of moral righteousness </li></ul></ul><ul><li>Transformational leader </li></ul><ul><ul><li>motivates people to transcend their personal interests for good of group </li></ul></ul><ul><li>Transactional leader </li></ul><ul><ul><li>manage through transactions, using their legitimate, reward and coercive powers to give commands and exchange rewards for services rendered </li></ul></ul>
  15. 15. Nontraditional Leadership Roles <ul><li>Servant leader </li></ul><ul><ul><li>serves others’ needs while strengthening organization </li></ul></ul><ul><li>Bridge leader </li></ul><ul><ul><li>bridges conflicting value systems or different cultures </li></ul></ul><ul><li>Shared leadership </li></ul><ul><ul><li>rotating leadership </li></ul></ul><ul><ul><li>people rotate through leadership role based on which person has most relevant skills </li></ul></ul>
  16. 16. Good leaders need courage <ul><li>Seeing things as they are and facing them head-on, making no excuses and harboring no wishful illusions </li></ul><ul><li>Saying what needs to be said to those who need to hear it </li></ul><ul><li>Persisting despite resistance, criticism, abuse, and setbacks </li></ul>
  17. 17. For Review Only
  18. 18. Vroom’s Model <ul><li>Emphasizes participative dimension of leadership, i.e. how leaders go about making decisions. </li></ul><ul><li>Factors involved to analyze problems </li></ul><ul><ul><li>decision significance </li></ul></ul><ul><ul><li>importance of commitment </li></ul></ul><ul><ul><li>leader’s expertise </li></ul></ul><ul><ul><li>likelihood of commitment </li></ul></ul><ul><ul><li>group support for objectives and group expertise </li></ul></ul><ul><ul><li>team competence </li></ul></ul>
  19. 19. Vroom’s Five Leader Decision Styles <ul><li>Decide </li></ul><ul><ul><li>make decision alone </li></ul></ul><ul><ul><li>announce or sell it to group </li></ul></ul><ul><li>Consult individually </li></ul><ul><ul><li>present problem to group members individually </li></ul></ul><ul><ul><li>get suggestions, and then make decision </li></ul></ul><ul><li>Consult group </li></ul><ul><ul><li>present problem to group members </li></ul></ul><ul><ul><li>get suggestions, and then make decision </li></ul></ul>
  20. 20. Vroom’s Five Leader Decision Styles <ul><li>Facilitate </li></ul><ul><ul><li>present problem to group in a meeting </li></ul></ul><ul><ul><li>act as facilitator to get ideas </li></ul></ul><ul><li>Delegate </li></ul><ul><ul><li>permit group to make decision within prescribed limits </li></ul></ul>
  21. 21. Ohio State Studies <ul><li>Examined performance and maintenance behaviors of leaders </li></ul><ul><li>Found that supervisors who scored high on maintenance behaviors had fewer grievances and less turnover in their work units than those who were low on this dimension </li></ul><ul><li>When a leader rates high on performance-oriented behaviors, he or she should also be maintenance-oriented. </li></ul>
  22. 22. Michigan Studies <ul><li>Examined the impact of leader behaviors on groups’ job performance </li></ul><ul><li>Most effective managers engaged in task-oriented behaviors (planning, scheduling, coordinating, providing resources, and setting performance goals) and relationship-oriented behaviors (demonstrating trust and confidence, being friendly and considerate, showing appreciation, keeping people informed) </li></ul>
  23. 23. Fiedler’s Contingency Model <ul><li>Effectiveness depends on two factors </li></ul><ul><ul><li>personal style of the leader </li></ul></ul><ul><ul><li>degree to which situation gives leader power, control, and influence over situation </li></ul></ul>
  24. 24. Fiedler’s Contingency Model <ul><li>Questions used to analyze the situation </li></ul><ul><li>Are leader-member relations good or poor? </li></ul><ul><li>Is the task structure or unstructured? </li></ul><ul><li>Is the leader’s position power strong or weak? </li></ul>
  25. 25. Fiedler’s Least Preferred Co-worker (LPC) <ul><li>Task-motivated leadership </li></ul><ul><ul><li>emphasis on completing task </li></ul></ul><ul><ul><li>more likely to be exhibited by leaders with low LPC scores </li></ul></ul><ul><li>Relationship-motivated leadership </li></ul><ul><ul><li>emphasis on maintaining good interpersonal relationships </li></ul></ul><ul><ul><li>more likely to be exhibited by high LPC scores </li></ul></ul>
  26. 26. Substitutes for Leadership <ul><li>Workplace factors that can exert same influence on employees as leaders </li></ul><ul><li>Group maintenance substitutes </li></ul><ul><li>closely knit groups </li></ul><ul><li>job is inherently satisfying </li></ul><ul><li>Task performance substitutes </li></ul><ul><li>people with experience and ability </li></ul><ul><li>rigid rules and procedures </li></ul>